Apple’s Aging iPhones Could Drive Stock Growth, Predicts Bank of America
Bank of America analysts recently revealed that Apple’s aging iPhone base presents a significant opportunity for stock growth. With a new upgrade cycle expected to be fueled by AI features and customer loyalty, the tech giant’s performance is anticipated to soar to new heights.
A recent survey conducted by Bank of America found that a majority of iPhone users in the US, UK, India, and China are still using outdated devices. Only 29% of users have the latest iPhone 13, while 13% are using the iPhone 12, and 31% have even older models, indicating that less than 25% of iPhone users have upgraded in the past three years.
Despite criticism for lagging behind competitors in new hardware and software offerings, Apple’s revenue in the second quarter saw a significant increase, with iPhone sales being crucial. Bank of America analysts predict that the aging iPhones among consumers may actually be an opportunity for Apple stock.
In response to the aging iPhone base, Bank of America has raised Apple’s price target to $256, citing increased confidence in a multi-year iPhone upgrade cycle driven by aging installed base and new AI features. Analysts believe that the launch of new AI-enabled features such as Apple Intelligence will drive customers to upgrade their devices.
Additionally, Apple’s focus on customer loyalty and wearable technology is expected to drive its optimistic outlook. With a high percentage of current iPhone users showing intention to purchase another iPhone when upgrading, along with strong demand for the Apple Watch and Apple Vision Pro, Apple is poised for success in the coming years.
Overall, Bank of America’s bullish report on Apple’s stock growth potential based on the aging iPhone base and new AI features presents a compelling case for investors looking to capitalize on the tech giant’s future success.
